Mine is the same I have to hold the button down for full off. I don't run like that because it allows to much wheel spin for my needs since I mostly just rock crawl my XK. Once and a while when the sand is thick at the beach I hold the button down for some more wheel spin but thats about it.
When off road I run mine with ESP full-off (requires holding down the button on my '06 whether in 4Hi or 4Lo). I don't like the ABS coming on when on washboard or cornering through the bumps. It also seems to work better on the dunes when turned off.
'06 XK Limited, 5.7 Hemi, QDII, OME struts & HD springs, JBA UCAs, 285/70R17 BFG KM2, 4XGuard Sliders, 4XGuard Diff Guard, Fox 2.0 reservoir shocks, custom bumpers and Warn xi9000
Wish list: SFA, in-dash Windows 8 PC
As soon as I engage low range the ESP is fully off in mine. QDII 2007.
2007 WH Grand Cherokee CRD QDII - 3" Exhaust, GDE Flash Tune, CRDSTU Hybrid Lift & bash Plates, 4xGuard Rock Rails & Rear Sliders, Saguaro F&R Bars, Warn 9.5CTI-s, AEV Saverge Rims, 35" KM2's, Snorkel, Custom Rear Drawers, ARB Dual Compressor + On Board Air, BullyDog Monitor, Dual Optimas Front and Dual Rear Aux Batteries YouTube Vids
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